Navigating the Side Hustle Minefield

The side hustle, otherwise known as people running businesses “on the side”, has become a global phenomenon. According to NBN (2017), 41% of customers aged 16+ already have a side hustle in play. However, it is not just young millennials who are involved as stay at home parents, employees who are mid-career, people approaching retirement and retirees are also starting their own side hustle.  

Key drives of this phenomenon include: 

• The internet which has made it easier and cheaper to run your own business 

• It can be a necessity for employees and retirees struggling with cashflow and low interest rates 

• The opportunity to be your own boss, financially independent and wealthy   

Although there are many benefits to having your own side hustle, you should be wary of the following 

• ATO – If you are caught with undisclosed income you will have to pay tax on that and may suffer heavy penalties 

• Centrelink – You could lose your pension and may have to repay benefits wrongly received  

• Employer – Employers have to be tough on your side hustle as it could cost you your job 

• CGT – You may have to pay Capital Gains Tax on your home which may otherwise be exempt 

• Poor accounts – If you are audited, go through a divorce or want to sell your business and don’t have proper up to date accounts the impacts could be huge  

• Liability – What if an accident happens and a customer is injured or suffers a loss of some sort? Are you properly covered?  

The ATO and Centrelink are crackling down on side hustlers as it is such a big part of our economy now. If you think you may need some help navigating the side hustle minefield, please contact us today on 08 8418 2111 or email us at enquire@addeptwealth.com.au.